TORONTO, May 6 /CNW/ - Fiber Optic Systems Technology, Inc. ("FOX-TEK"
or the "Corporation"), a developer and manufacturer of patented
non-intrusive sensing systems, is pleased to announce that it has
received approval from the TSX Venture Exchange to amend the conversion
price and maturity date of the $365,000 in secured convertible
debentures (the "Debentures") and the expiry date of the 4,055,555
common share purchase warrants (the "Warrants") of the Corporation,
which were issued in connection with the Corporation's nonbrokered
private placement of the Debentures which were issued on May 7, 2011
(for complete information on the Debentures and Warrants please refer
to the Corporation's press release of May 7, 2010).
The Debentures, as amended, bear interest at a rate of 12% per annum
payable in cash on November 7, 2011 and are convertible into common
shares in the capital of the Corporation at a price of $0.10 per common
share. Each Warrant, as amended, entitles the holder thereof to
purchase one common share of the Corporation at any time until the
close of business on November 7, 2011 at an exercise price of $0.10 per
The Debentures and the Warrants will be amended, effective May 7, 2011,
to amend the conversion price of the Debentures to $0.10 per common
share, to extend the maturity date of the Debentures to November 7,
2011 and to extend the term of the Warrants until November 7, 2011. All
other provisions of the Debentures and Warrants will remain the same.
Insiders of the Corporation hold less than 7% of the Debentures and
About Marcon International Inc. and FOX-TEK:
Marcon International Inc. ("Marcon"), a wholly owned subsidiary of the
Corporation, is an Ontario based, industrial supply contractor
servicing the energy sector and a number of US Government entities.
Marcon's principal business is the sale and distribution of industrial
parts and equipment (Electrical, mechanical and Instrumentation.) In
addition to departments and agencies of the U.S. Government, Marcon's
major clients include Saudi Arabia-Sabic Services (Refining and
Petrochemical), Bahrain National Gas Co, Bahrain Petroleum, Qatar
Petroleum, Qatar Gas, Qatar Petrochemical, Gulf of Suez Petroleum,
Agiba Petroleum and Burullus Gas Co.
FOX-TEK develops non-intrusive asset health monitoring sensor systems
for the oil and gas market to help operators track the thinning of
pipelines and refinery vessels due to corrosion/erosion, strain due to
bending/buckling, and process pressure and temperature. FOXTEK's FT
fiber optic sensor and PinPoint systems allow cost-effective, 24/7
remote monitoring capabilities to improve scheduled maintenance
operations, avoid unnecessary shutdowns, and prevent accidents and
Marcon and FOX-TEK have offices in Oakville, ON; Toronto, ON and
Alberta. The common shares of FOX-TEK are traded on the TSX Venture
Exchange under the symbol "FOX". For more information, visit www.fox-tek.com.
The TSX Venture Exchange has in no way passed upon the merits of the
proposed transaction and has neither approved nor disapproved the
contents of this press release.
This press release contains forward-looking statements based on
assumptions, uncertainties and management's best estimates of future
events. Actual results may differ materially from those currently
anticipated. Investors are cautioned that such forward-looking
statements involve risks and uncertainties. Important factors that
could cause actual results to differ materially from those expressed or
implied by such forward-looking statements are detailed from time to
time in FOX-TEK's periodic reports filed with the Ontario Securities
Commission and other regulatory authorities. FOX-TEK has no intention
or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
SOURCE FIBER OPTIC SYSTEMS TECHNOLOGY, INC. (FOX-TEK)
For further information:
Allen Lone, President & C.E.O., Fiber Optic Systems Technology, Inc.
Tel: (905) 338 -2323 Ext 22, email: email@example.com